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Will Top Line Expansion Boost Monolithic Power's Q3 Earnings?
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Monolithic Power Systems, Inc. (MPWR - Free Report) is set to report its third-quarter 2024 results on Oct. 30, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 3.26%. It pulled off a trailing four-quarter earnings surprise of 2.57%, on average.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
This Kirkland, WA-based company is likely to report higher revenues year over year in the third quarter, driven by healthy momentum in several verticals. However, weakness in the Consumer and Industrial segments is a concern.
Factors at Play for MPWR
Monolithic Power has been benefiting from solid demand for AI power solutions, increasing order intake in several end markets. Increasing investment in 5G and wireless is expected to have driven sales in the Communications segment. Growing adoption of advanced driver assistance systems and design wins with major car makers, especially in the EV market, are likely to have supported net sales in the Automotive business. Demand remains strong in Enterprise Data, Storage and Computing segments.
To enhance supply stability amid growing geopolitical unrest, the company has been undertaking several steps to expand and diversify its global supply chain. In addition, management has been putting a strong emphasis on product innovation to cater to emerging market dynamics. These factors are expected to have led to incremental revenues in the third quarter.
The consensus estimate for revenues from the Enterprise Data vertical is pegged at $213.7 million, implying solid growth from $98.94 million in the year-ago quarter. The Zacks Consensus Estimate for net sales in the Communication segment is pegged at $52.8 million, indicating an improvement from $46.79 million in the year-ago quarter.
Contribution from the Consumer segment is expected to be $50.40 million, implying a decline from $62.37 million reported in the year-ago quarter. The Zacks Consensus Estimate for net sales from the Industrial vertical is pegged at $36.75 million, indicating a reduction from $42.14 million reported in the prior-year quarter.
Revenues from the Storage and Computing vertical are expected to be $146.31 million, indicating an increase from the prior-year quarter’s $129.46 million. Net sales from the automotive vertical are pegged at $98.03 million, indicating growth from $95.17 million reported in the year-ago quarter.
For the September quarter, the Zacks Consensus Estimate for revenues is pegged at $600 million, indicating an increase from $475 million reported in the year-ago quarter. The consensus estimate for adjusted earnings per share is pegged at $3.96, implying growth from $3.08 reported in the prior-year quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Monolithic Power this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Monolithic Power Systems, Inc. Price and EPS Surprise
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post a beat this season:
The Earnings ESP for PayPal Holdings, Inc. (PYPL - Free Report) is +2.57% and it carries a Zacks Rank of 3 at present. The company is scheduled to report quarterly numbers on Oct. 29.
The Earnings ESP for Qualcomm Technologies, Inc. (QCOM - Free Report) is +0.48% and it carries a Zacks Rank of 2 at present. The company is scheduled to report its quarterly numbers on Nov. 6.
The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +0.96% and it carries a Zacks Rank of 2 at present. The company is scheduled to report its quarterly numbers on Nov. 7.
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Will Top Line Expansion Boost Monolithic Power's Q3 Earnings?
Monolithic Power Systems, Inc. (MPWR - Free Report) is set to report its third-quarter 2024 results on Oct. 30, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 3.26%. It pulled off a trailing four-quarter earnings surprise of 2.57%, on average.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
This Kirkland, WA-based company is likely to report higher revenues year over year in the third quarter, driven by healthy momentum in several verticals. However, weakness in the Consumer and Industrial segments is a concern.
Factors at Play for MPWR
Monolithic Power has been benefiting from solid demand for AI power solutions, increasing order intake in several end markets. Increasing investment in 5G and wireless is expected to have driven sales in the Communications segment. Growing adoption of advanced driver assistance systems and design wins with major car makers, especially in the EV market, are likely to have supported net sales in the Automotive business. Demand remains strong in Enterprise Data, Storage and Computing segments.
To enhance supply stability amid growing geopolitical unrest, the company has been undertaking several steps to expand and diversify its global supply chain. In addition, management has been putting a strong emphasis on product innovation to cater to emerging market dynamics. These factors are expected to have led to incremental revenues in the third quarter.
The consensus estimate for revenues from the Enterprise Data vertical is pegged at $213.7 million, implying solid growth from $98.94 million in the year-ago quarter. The Zacks Consensus Estimate for net sales in the Communication segment is pegged at $52.8 million, indicating an improvement from $46.79 million in the year-ago quarter.
Contribution from the Consumer segment is expected to be $50.40 million, implying a decline from $62.37 million reported in the year-ago quarter. The Zacks Consensus Estimate for net sales from the Industrial vertical is pegged at $36.75 million, indicating a reduction from $42.14 million reported in the prior-year quarter.
Revenues from the Storage and Computing vertical are expected to be $146.31 million, indicating an increase from the prior-year quarter’s $129.46 million. Net sales from the automotive vertical are pegged at $98.03 million, indicating growth from $95.17 million reported in the year-ago quarter.
For the September quarter, the Zacks Consensus Estimate for revenues is pegged at $600 million, indicating an increase from $475 million reported in the year-ago quarter. The consensus estimate for adjusted earnings per share is pegged at $3.96, implying growth from $3.08 reported in the prior-year quarter.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Monolithic Power this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Monolithic Power Systems, Inc. Price and EPS Surprise
Monolithic Power Systems, Inc. price-eps-surprise | Monolithic Power Systems, Inc. Quote
Zacks Rank: MPWR currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post a beat this season:
The Earnings ESP for PayPal Holdings, Inc. (PYPL - Free Report) is +2.57% and it carries a Zacks Rank of 3 at present. The company is scheduled to report quarterly numbers on Oct. 29.
The Earnings ESP for Qualcomm Technologies, Inc. (QCOM - Free Report) is +0.48% and it carries a Zacks Rank of 2 at present. The company is scheduled to report its quarterly numbers on Nov. 6.
The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +0.96% and it carries a Zacks Rank of 2 at present. The company is scheduled to report its quarterly numbers on Nov. 7.